Many of Australia's top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.
Three ASX shares brokers have named as buys this week are listed below. Here's why they are bullish on them:
Image source: Getty Images
GUD Holdings Limited (ASX: GUD)
According to a note out of Citi, its analysts have upgraded this diversified products company's shares to a buy rating with an improved price target of $10.00. The broker believes that GUD is well-placed to benefit from a recovery in new car sales. It expects this to boost its auto parts segment. In addition, the broker highlights the low multiples (11x FY23 estimated earnings) that its shares trade on. The GUD share price is trading at $8.23 this afternoon.
Premier Investments Limited (ASX: PMV)
A note out of Macquarie reveals that its analysts have retained their outperform rating and $29.00 price target on this retail conglomerate's shares. Macquarie was impressed with Premier Investments' strong start to the year and notes that its sales growth is tracking ahead of its expectations. This has led to the broker upgrading its earnings estimates for the year. The Premier Investments share price is fetching $24.98 on Wednesday.
REA Group Limited (ASX: REA)
Analysts at Goldman Sachs have retained their conviction buy rating and $159.00 price target on this real estate listings company's shares. Goldman remains positive on REA's yield outlook, noting that the company has good visibility on its >10% growth target over its three-year planning cycle. Overall, the broker is expecting this to underpin modest EBITDA growth in FY 2023 and then a 19% jump in FY 2024. The latter is 4% ahead of consensus estimates. The REA share price is trading at $120.63 today.
